Rivalry
Was Rivalry in the specialized Coffee Industry high or low in the 1990’s
False(High?)- In the 1990’s the largest growing coffee market was the Specialty Coffee Market. New entrants and rapid growth lead to price competition and rivalry
What industry would competitors need to enter to compete with Starbucks?
A: Tea industry
B: Coffee Industry
C: Specialized Coffee Industry
C: Specialized Coffee Industry
What method did Starbucks use in the 1980’s to allow customers all over the US to become Buyers of Starbucks Coffee?
Mail-Order Catalogue that gave them insight into the larger market before moving into them
How is Starbucks able to bypass a lot of suppliers other companies have?
A: They take the beans directly from the producers and roast them themselves.
B: Shultz kidnapped Dunkin’s CEO’s son.
C: Starbucks grow their own beans.
A: They take the beans directly from the producers and roast them themselves.
How did Starbucks shift from a supplier to the retailer?
When Swartz bought them he knew he wanted to make them a retailer that sold made-to-order cups.
What criteria made Starbucks become a leader in the market?
A: premium quality coffee, responsive service, and inviting ambiance. (Italian café)
Why are companies such as Folgers and Maxwell house considered Substitutes, instead a rival of Starbucks?
A: Because they’re not in the specialty coffee industry, but they do sell (regular) coffee.
What did Starbucks use Wholesale Distribution for?
Expand into new markets and expand revenue in its distribution channels with buyers that weren’t customers directly
What makes it easier for Starbucks to ensure all their stores have quality supplies?
A: They do not franchise, so all stores are owned, operated and supplied by corporate?
What was a main concern to Starbucks in international entry
A: Maintaining the company culture while expanding
Why are overseas markets more difficult to compete in?
A: Europe has many more specialty coffee shops leading to higher price rivalry.
Which event in the 18th century shifted American's views towards coffee?
Boston Tea Party
Who was Starbucks powerful buyer with regards to their long term grocery licensing agreement
Kraft
How was Starbucks able to expand so rapidly without outgrowing its suppliers?
They had multiple bean suppliers and they roasted the beans together to create their own roasts.
How did Starbucks create a high barrier to entry?
They over populated areas with their stores, risking their own cannibalization, so that others had little opportunity